How much tax will I pay

[nokianut]

Im buying a 2 bedroom flat in the Alps for 107,000 Euros.

Could anyone tell me how much the costs + taxes will be for purchasing the flat.

Ive been told that if I pay a cash sum the the seller, He can reduce the asking price of the flat by that amount so that I pay less tax -- How much tax would I save if I paid him 15,000 euros in cash ?

How easy is it to open a French bank account from England and what one would you recommend ?

Also what would be the best way to transfer money from a uk sterling account to Euro's.?

 

Thanks

Phil

 

[Nick Trollope]

Ive been told that if I pay a cash sum the the seller, He can reduce the asking price of the flat by that amount so that I pay less tax -- How much tax would I save if I paid him 15,000 euros in cash ?

Dunno, but it should be good for a few months on a prison farm.

 

[Iceni]

Our notaire was quite heavy on us when we signed. She wanted to make sure - very sure that nothing like this was happening.

Tis illegal as the evasion of tax is anywhere. Nick is correct with his comment.

[nokianut]

Just wondered what the actual costs would be -- anyone got an answer ?

[Dave&Olive]

take it`s  not a new property 7.5% notaire fees plus estate agent fees 5-7%.

     if the estate agents fees are included in the selling price e.g. f.a.i. then take their fees away before adding the notary fees.

         Dave

[nokianut]

There's no estate agent involved.

What are the taxes to pay , ie stamp duty as in UK. Are there any thresholds for this like in UK its £120000.

 

??

[nokianut]

How easy is it to open a French bank account from England and what one would you recommend ?

Also what would be the best way to transfer money from a uk sterling account to Euro's.?

[BJSLIV]

The 7600 euros fee for the Notaire includes his fees and all the stamp duties.

[Liz]

[quote]How easy is it to open a French bank account from England and what one would you recommend ? Also what would be the best way to transfer money from a uk sterling account to Euro's.?[/quote]

Have a look at http://forums.livingfrance.com/shwmessage.aspx?ForumID=279&MessageID=168586 for info about Barclays. Also have a read through other postings in this section, there is a lot of chat about banks and tranfering money.

Liz (29)

[Will]

A quick estimate using one of the 'frais notaires' calculators on the internet shows that the actual tax you would save would be around 300€. So from your point of view it doesn't really seem worth the bother bearing in mind that, as others have pointed out, what your vendor is suggesting is illegal. Also should you sell the apartment in future and it is liable to capital gains tax, you would appear to have made a bigger profit and hence have to pay more tax at that stage.

The vendor may have an interest in keeping the apparent price down for inheritance tax or similar reasons, it won't be in order to save you tax.

Such a transaction could be legal if the 15,000€ covered fixtures and fittings, but then it should go on the Acte de Vente as such and there would be no reason to keep it secret from the notaire.

So I think you should ignore the vendor's kind offer on this occasion.

It's not easy to open a French bank account from England. One which is geared up to such a service is Credit Agricole's Britline account, but even so it seems a lot of paperwork can be involved.

For sterling/euro transfers of larger amounts I suggest you look at one of the currency exchange companies that contributes articles to, or advertises in, Living France magazine. They are all perfectly reputable and very professional.

[nokianut]

Thanks Will -- great advice.  Thanks

 

Your the only one who actually answered the question asked..

 

Phil